Sprint owner, Softbank, splits into two companies

NEW YORK — Japanese telecommunications company Softbank, which has a controlling stake in U.S. telecom's Sprint Corp. (S), said it will split into two companies.

The split, announced Monday, could help Softbank protect its profitable Japanese telecom assets from the downward pressure of Sprint's stock price.

Shares of Sprint have fallen 56% over the last two years as the company struggles to compete with cost-cutting by T-Mobile. Last summer, T-Mobile outpaced Sprint to become the nation's third-largest carrier, behind AT&T and Verizon.

The reorganization will separate Softbank's overseas assets, including its stakes in Sprint and Chinese Internet company Alibaba, into a company apart from its Japanese assets, which include its domestic mobile business and Internet company Yahoo Japan.

The overseas business of fast-growing but risky Internet and telecom assets will be headed by former Google executive Nikesh Arora. The domestic operations will be headed by Ken Miyauchi, who currently serves as president, chief operations officer and director of Softbank, together with Arora.

Shares of Sprint closed Friday at $3.82 a share. Shares of Softbank, which trade over-the-counter, closed Friday at $25.57 a share.

Follow USA TODAY reporter Kaja Whitehouse on Twitter: @kajawhitehouse